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JPMorgan and Goldman Sachs took top spots as M&A advisers in the US, by grabbing 'big-ticket deals' in the first half of 2020, GlobalData says

Business Insider logo Business Insider 8/8/2020 snagarajan@businessinsider.com (Shalini Nagarajan)
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  • US banks JPMorgan and Goldman Sachs were the leading financial advisers on acquisition deals in the first half of 2020, according to the latest survey from GlobalData.
  • The banking titans secured the top spots on the basis of the value and volume of the deals they advised on. 
  • "Both banks were involved in some big-ticket deals, however, involvement in two megadeals (>$10 billion) mainly helped JP Morgan top the list by value," one analyst said.
  • JPMorgan delivered a solid second-quarter performance thanks to surging trading revenue. Goldman Sachs lowered its previously stated profit by 91% after taking a nearly $4 billion hit from the 1MDB scandal. 
  • Visit Business Insider's homepage for more stories.

JPMorgan and Goldman Sachs were the leading financial advisers on mergers and acquisitions in the US in the first six months of the year, according to data compiled by analytics firm GlobalData

The two banks secured those top spots based on the value and volume of the deals they advised on. 

Having advised on 57 deals worth about $95 billion, JPMorgan was the highest of all advisers based on deal value.

In terms of volume, Goldman Sachs advised on 68 deals worth about $74 billion during the first half of the year.

"Goldman Sachs, despite leading by volume, lost the top position by value to JP Morgan. Both of these firms were involved in some big-ticket deals, however, involvement in two megadeals (>$10 billion) mainly helped JP Morgan top the list by value," said Aurojyoti Bose, financial deals' analyst at GlobalData.

Morgan Stanley and Bank of America also made the leading financial advisers list, having been involved in 42 deals worth $75 billion, and 50 deals worth about $50 billion, respectively.

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JPMorgan reported a solid second-quarter this month, with a 15% rise in net revenue to $33.8 billion. The company's investment-banking revenue surged 91% and markets revenue rose 79%.

In a report released last month, the bank said COVID-19 could prove to be a "major turning point" for sustainable investing, as more investors consider a company's environmental, social, and governance factors, apart from basic metrics such as a strong balance sheet and cash flow.

At first, Goldman Sachs also posted a strong quarter on growing trading volumes because of heightened market volatility at the time. The bank later lowered its previously stated earnings by 91% after agreeing to pay $3.9 billion to resolve Malaysia's probes related to the 1MDB scandal.

The company's £13 billion ($17 billion) revenue was more concentrated in deal-advising and trading operations than any other Wall Street bank. 

Some deals the 150-year-old investment bank advised on this year include Adevinta's acquisition of eBay's classifieds ads business, Bausch Health's spin off of its eye-care business, and Altice's 49.9% stake sale to Morgan Stanley Infrastructure Partners.

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